Employer and universal credit nightmare

Cosmo983

I’ve been on statutory sick pay for months and now exhausted my entitlement to it. I applied for universal credit when I went into SSP to top me up. I’ve had several issues with this. My employer keeps reporting incorrect figures for my earnings to HMRC. I don’t receive the amounts reported as on my payslip they make obscure deductions and describe those deductions as “claim” they can’t explain to me what they are for despite repeated requests I’m getting nowhere with my employer. For example my employer reports that my take home pay is £774.00 that means I don’t get much universal credit but my company actually only pay me £20 and now I don’t have enough to pay rent or any other bills. Every month this has been happening. I’ve explained to universal credit that I’m not being paid these amounts and offered to show bank statement but they said the only figure that matters to them is the reported take home pay by my employer because for all they know I’m using the money my employer pays me to pay to a share plan or pension etc. This isn’t the case. My employer keeps saying they will look into it but they don’t get back to me and universal credit can’t help. I’ve tried to contact HMRC for help but there doesn’t seem to be an option to talk to someone for this specific reason. I’m at my wits end with it. It’s also affected my council tax benefit as the local authority thinks I’m making much more money than I actually am. Can anyone offer any advice please? 

[Deleted User]

Could the Council have already got an Attachment of Earnings, esp if you are behind. Sorry whilst it seems a fairly taboo subject, when I've searched I just seen whatever past threads on AofE where people claim they knew nothing until it was to late and they just had deductions without any employer comms. Personally I would try and seek out Citizens Advice, perhaps they will signpost you to other help as well to help with massive shortfall as well as getting to the bottom of this mess for you.

Cosmo983

Hi thanks for the reply. It’s definitely not to do with the council tax. I’ve checked this. 

NedS

You need to ask Universal Credit to raise an RTI dispute. This is where the UC RTI team will contact HMRC who will try to contact your employer to find out what's happening. HMRC will report back to UC who will let you know the outcome (you'll be amazed how an employer develops a willingness to sort things out when HMRC contact them!)

The main issue you have is that your payslip shows these earnings, so you can not use your payslip as evidence to support your case. And bank statements don't really help as you could have another bank account you are not telling them about (how do you prove you don't have something). Still, a bank statement showing that what you've actually received does not match what is on your payslip may help, or does your payslip actually show £20 Net pay after these deductions they can not explain?

Cosmo983

Yes payslip shows correct amount after deductions. I asked universal credit to raise a dispute but they told me I can only resolve this through my employer. 

NedS

Cosmo983 said:

Yes payslip shows correct amount after deductions. I asked universal credit to raise a dispute but they told me I can only resolve this through my employer. 

Technically, if what is on your payslip matches what is on RTI then they are correct - there is nothing to dispute. A dispute is raised when the two do not match.

Cosmo983

The problem is the deductions are incorrect and I can’t make my employer explain them. I’m not sure what to do next. 

huckster

The problem is that your employers are filing incorrect information. They cannot refuse to correct the information, if they know it is wrong.  You would have every right to contact HMRC yourself to file a complaint with them, but should raise a grievance with your manager first.

Universal Credit cannot fix your employers payroll problems, as they will be told by HMRC that they cannot contact every employers where a UC claimant is experiencing problems with the RTI data being entered incorrectly.

The process is that the UC claimant gets the employers to correct the RTI information and then UC can use the updated earnings information that has been entered. If the earnings are now reduced on the RTI feed, this should then result in an underpayment being calculated and paid to you.

Cosmo983

Thanks. They just say they are looking into it and never get back to me despite repeated attempts. They are a big company and nobody seems to take ownership of it. Think I’ll need to take them to a tribunal to resolve this but unfortunately that will take some time and I’m struggling with paying rent etc. 

Icequeen1

Cosmo983 said:

Thanks. They just say they are looking into it and never get back to me despite repeated attempts. They are a big company and nobody seems to take ownership of it. Think I’ll need to take them to a tribunal to resolve this but unfortunately that will take some time and I’m struggling with paying rent etc. 

I would ask for a mandatory reconsideration and tell them they should amend the RTI data under Regulation 61 and provide copies of your bank statements. Regulation 61 allows DWP to depart from the RTI data where it doesn't properly reflect employed earnings for UC - see https://www.legislation.gov.uk/uksi/2013/376/regulation/61 
Reg 61 has already been challenged at Tribunal see https://assets.publishing.service.gov.uk/media/59ba6554e5274a561339d3a3/CUC_0166_2017-00.pdf 
You should also contact HMRC PAYE team - they should be able to talk to you about this issue.